Reports are surfacing that Apple will introduce an updated version of Time Capsule at next weeks World Wide Developers Conference. Recently, Apple retail stores have been running low on Time Capsule and AirPort Extreme stock, leading some to speculate that a refresh is immanent. The new models are expected to include significant upgrades, borrowing technology from iOS devices.

These reports indicate that new Time Capsule models will feature either A4 or A5 processors and run a version of iOS similar to Apple TV. The new models may also include advanced functions such as the ability to cache iOS or Mac software updates, allowing users to install software much more quickly than they can today.

If the latest Time Capsule update does include iOS features, then it could also integrate iCloud services as well. It could conceivably store cached iCloud data on the device for faster access to remote data in the cloud. This would give users a faster way to access their iTunes media on their iOS devices, without the need to physically sync with a host computer.

If future Time Capsule models do take on a more iOS-like design, then this could also lead to wireless iOS syncing. This has been one area where Apple has not been as innovative as the competition. Time Capsules may also have the ability to store iOS data allowing users to cut the cord and sync wirelessly without connecting to a computer. iCloud syncing would make this process fast and easy especially if Time Capsules were optimized to cache data ahead of time.

Time Capsule received a bump in capacity, toping out at 2TB back in July of 2009. It’s certainly due for a refresh and with the immanent release of so much new software next week at Apple’s WWDC, this would be the perfect time to release a new model. It would also make sense for Apple to upgrade the AirPort Extreme base station at this time as well, since current models are so similar in design. We only have to wait a few more days until Steve takes the stage and releases more insanely great, magical products that help us think differently. Of course what that really means is spend more money on Apple products.

Darn... I have a 2TB Time Capsule already. Love it (overpriced but very nice IMO). I'd hate to see some new features in iOS5 combined with iCloud and this new hardware that would make it another typical Apple "forced upgrade". I'm such a sucker for electronic convenience

I'd hate to see Apple add some sweet new functionality to this new Timecapsule in conjunction with iOS5 and iCloud that made it a necessary hardware upgrade of folks "old tc's" to retain the newest latest greatest. Hopefully existing Time Capsule owners aren't left behind here

Why would you want a time capsule to run an OS? What benefits would this have? My external hard drive serves as a time capsule... it doesn't "think" and it works just fine.

I think this is a waste of money

Well, if this device runs on an A4 processor and uses iOS (hypothetically)--it can be jailbroken, giving power users and hackers root control over the device. Suddenly, we have some serious firepower.

Let's assume the device has 2TB platter-based storage and 8 GB of NAND. We can now use that 2TB as an NAS volume instead of being locked into Apple's proprietary AFP technology that only talks to Apple software and isn't remotely accessible. Throw AirPlay onto that device, and your music/moveis could live on a single 2TB place that can stream music to anywhere in the range of the network.

Heck, you could put lighttpd on there and use your "Time Capsule 2" as an external-facing server for serving static content. Put BIND on there, and now you've got locally-based DNS. Five hudskies (assuming the price stays the same) for a 2TB web server and DNS provider? That's a ridiculously cheap setup. Never mind the fact you also get a very solid four-port 1000BASE-T double-bonded full duplex hub, an a/b/g/n dual-band router, and a full LAN/WAN Ethernet duplexed switch for "free." Oh, and the USB port--AirPrint h4xxing time.

That'd be worth its weight in gold, if you ask me (only if a jailbreak and good software support exist for it).